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ETF Comparison

TFLO vs USFR: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares Treasury Floating Rate Bond ETF and WisdomTree Floating Rate Treasury Fund covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricTFLOUSFR
Full nameiShares Treasury Floating Rate Bond ETFWisdomTree Floating Rate Treasury Fund
IssueriSharesWisdomTree
Last Close$50.58 as of August 14, 2026$50.45 as of August 14, 2026
Distribution yield3.79%3.80%
Distribution Safety Score™ 8078
Expense ratio0.15%0.15%
AUM$6.69B$19.0B
Distribution frequencyMonthlyMonthly
Underlying index—Bloomberg U.S. Treasury Floating Rate Bond Index
Objective—Track the performance of U.S. Treasury floating-rate notes (FRNs).
Asset classFixed IncomeFixed Income
Inception date02/04/201402/04/2014
Beta-0.02-0.02
Last dividend$0.1598$0.1599
Ex-dividend date08/03/202607/28/2026

Bottom lineTFLO and USFR are nearly interchangeable — both offer very similar ultra short bond exposure with very similar cost and risk. Fees are effectively identical, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares
ETFs473
Total AUM$4664B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on TFLO.

See all iShares ETFs
WisdomTree
ETFs94
Total AUM$102B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

WisdomTree is known for developing thematic and factor-based ETFs that go beyond traditional market-cap weighting approaches. The issuer maintains a broad lineup spanning dividend and income strategies, international equities, commodities, bonds, digital assets, and specialized thematic areas like megatrends and alternatives. WisdomTree's diverse fund family appeals to investors seeking both traditional income exposure and more specialized strategies, with popular tickers across equity, fixed income, and alternative asset classes.

See our curated list of related YouTube videos on USFR.

See all WisdomTree ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

TFLO has lagged USFR over the trailing twelve months, posting a 3.60% total return against 3.99%. The lead holds up over 10 years too: USFR has compounded at 2.53% a year, against 2.40% for TFLO. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Feb 2014Volatility Sharpe Sortino Max drawdown
TFLO2.02%3.60%4.53%3.73%2.40%1.95%0.4%-0.13-0.17-0.3%
USFR2.39%3.99%4.68%3.83%2.53%1.98%0.3%0.300.44-0.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Feb 2014” measures every fund from February 4, 2014 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

TFLO (iShares Treasury Floating Rate Bond ETF) and USFR (WisdomTree Floating Rate Treasury Fund) are both monthly-pay dividend ETFs, but they take different approaches.

USFR offers the higher yield at 3.80% vs 3.79% for TFLO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

USFR is the larger fund by assets ($19.0B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, TFLO would generate roughly $31.58/month, while USFR would produce $31.67/month, at current distribution rates. Both pay monthly distributions.

TFLO yield3.79%
USFR yield3.80%
Monthly diff on $10K$0.08

Cost & efficiency

Over 10 years on $10,000, TFLO would cost approximately $150 in fees vs $150 for USFR (simplified, not compounded). Both charge the same expense ratio.

TFLO ER0.15%
USFR ER0.15%

Strategy & risk

TFLO is an ETF, while USFR tracks Bloomberg U.S. Treasury Floating Rate Bond Index with a bonds approach.

TFLO beta-0.02
USFR beta-0.02

Fund details

TFLO is managed by iShares (launched 02/04/2014) with $6.69B in assets. USFR is managed by WisdomTree (launched 02/04/2014) with $19.0B in assets.

TFLO AUM$6.69B
USFR AUM$19.0B
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Frequently asked questions

What is the current distribution yield for TFLO and USFR?

TFLO currently distributes 3.79% and USFR 3.80%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is TFLO or USFR better for dividend income?

It depends on your goals. USFR currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between TFLO and USFR?

TFLO (iShares Treasury Floating Rate Bond ETF) is an ETF, while USFR (WisdomTree Floating Rate Treasury Fund) tracks Bloomberg U.S. Treasury Floating Rate Bond Index with a bonds approach. They are issued by iShares and WisdomTree respectively.

Can I hold both TFLO and USFR?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is TFLO or USFR safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: TFLO scores 80, USFR scores 78. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, TFLO or USFR?

TFLO and USFR both charge the same expense ratio of 0.15%, so neither is cheaper on fees — pick based on yield, strategy, or underlying index instead.

How much income does $10,000 in TFLO vs USFR generate?

At current rates, $10,000 in TFLO would generate roughly $31.58 per month ($379.00 annually). The same in USFR would produce about $31.67 per month ($380.00 annually).

Which has performed better historically, TFLO or USFR?

TFLO has lagged USFR over the trailing twelve months, posting a 3.60% total return against 3.99%. The lead holds up over 10 years too: USFR has compounded at 2.53% a year, against 2.40% for TFLO. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

TFLO vs USFR — at a glance

Generated August 15, 2026.

Overview

TFLO and USFR are both ETFs tracking U.S. Treasury floating-rate bonds, delivering monthly income tied to short-term interest rates. They are nearly identical in cost (0.15% expense ratio each), inception date, and yield (both around 3.79–3.80%), but differ in their underlying indexes and asset bases, with USFR holding substantially more capital ($19.0B vs. $6.69B).

How they differ

The core difference is index methodology. USFR explicitly tracks the Bloomberg U.S. Treasury Floating Rate Bond Index, while TFLO's underlying index is not specified in its fund materials but follows iShares' own Treasury floating-rate approach. USFR's larger asset base ($19.0B) suggests it has become the dominant vehicle in this niche, potentially offering tighter spreads and lower trading costs due to higher liquidity. Both charge the same 0.15% expense ratio and deliver monthly distributions at nearly identical yields. Their matching betas of −0.02 indicate both move independently of equity markets—a hallmark of ultra-short Treasury exposure. Pricing is essentially equivalent ($50.58 for TFLO, $50.45 for USFR).

Who each is best for

TFLO: Fits investors seeking a simple, low-cost Treasury floating-rate ETF with no particular preference for index methodology and comfort with slightly lower trading volume relative to the category leader.

USFR: Fits investors who prefer transparent, well-documented index tracking (Bloomberg methodology) and value the deeper liquidity and scale that come with a $19.0B fund base.

Key risks to know

  • Interest rate floor risk. Both ETFs hold Treasury floating-rate notes that reset periodically. If the Fed holds rates flat or cuts, distribution payments may not rise as expected, potentially disappointing income-focused investors accustomed to yield climbing alongside the fed funds rate.
  • Minimal spread cushion. Treasury floaters offer extremely narrow credit risk (backed by the U.S. government) but provide little cushion against inflation or opportunity cost if rates remain low relative to historical norms.
  • Liquidity and NAV tracking risk. TFLO's smaller AUM may result in wider bid-ask spreads during market stress, causing purchase or redemption prices to diverge temporarily from net asset value. USFR's larger scale mitigates this risk.
  • Limited duration upside. Both funds' near-zero beta and ultra-short maturity profile mean they capture almost no price appreciation if Treasury yields fall—a trade-off for stability but a constraint if market conditions shift.

Bottom line

If you value transparency and the deepest available liquidity in Treasury floaters, USFR's larger scale and named Bloomberg index provide a modest edge; if you prioritize simplicity and are indifferent to index naming, TFLO delivers the same yield and costs at a smaller fund size. Either way, expect income tied tightly to fed funds movements, not sustained current-level yields if the Fed cuts rates. Past performance does not guarantee future distributions.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Bond fund basics How to read a fund's stats Why total return beats chasing yield T-bills vs. money market funds vs. CDs

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